Blockchain for Business: How It Works and Why It Matters
Blockchain technology, once synonymous with cryptocurrencies like Bitcoin, has transcended its origins to change the business world. This decentralized and secure ledger system has found applications across various industries, promising transparency, efficiency, and security.
In this comprehensive exploration, we will delve into what blockchain is in a business context, examine its adoption across industries, and take a closer look at some real-world use cases!
What is blockchain for business?
Blockchain is a system of storing and transferring data using a distributed ledger that is shared and synchronized among multiple participants. Each participant, or node, in the network, has a copy of the ledger and can validate and update it according to predefined rules. The ledger consists of blocks of data that are linked together by cryptographic hashes, forming a chain that is resistant to tampering and revision. Each block contains information such as transactions, contracts, or events that are recorded in a chronological and transparent manner.
Blockchain for business is different from public blockchains, such as Bitcoin or Ethereum, which are open to anyone and operate on a consensus mechanism that requires a lot of computational power and energy. Blockchain for business uses permissioned networks that are restricted to authorized entities and operate on a consensus mechanism that is more efficient and scalable. Blockchain for business also allows for more flexibility and customization in terms of governance, privacy, and functionality.
What industries are using blockchain technology?
Blockchain technology can be applied to various industries and sectors that involve multiple parties, complex processes, and high-value transactions. Some of the industries that are using or exploring blockchain technology are:
Blockchain in finance
Finance is one of the most prominent sectors that can benefit from blockchain technology. According to a report by Statista, the global blockchain technology market size in the financial sector was valued at approximately $1.5 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of over 75% from 2021 to 2028.
Blockchain can enable faster, cheaper, and more secure payments, settlements, remittances, and cross-border transactions. Blockchain can also facilitate the creation and exchange of digital assets, such as cryptocurrencies, tokens, stablecoins, and central bank digital currencies (CBDCs). Blockchain can also support the development of decentralized finance (DeFi), which is a movement that aims to provide financial services without intermediaries or centralized authorities.
Some examples of blockchain applications in finance are:
• Ripple: Ripple is a global payment network that uses blockchain technology to enable fast and low-cost cross-border transactions. Ripple connects banks, payment providers, digital asset exchanges, and corporates through its platform called RippleNet. Ripple also has its own native cryptocurrency called XRP, which can be used as a bridge currency for international payments.
• Mastercard: Mastercard is a leading payment technology company that has been exploring blockchain technology for various use cases. Mastercard has launched its own blockchain platform that can be used for business-to-business transactions, identity verification, trade finance, and loyalty programs. Mastercard has also partnered with several companies to enable the use of cryptocurrencies on its network.
Supply chain is another sector that can benefit from blockchain technology. Blockchain can enable greater visibility, traceability, and efficiency in the movement of goods and services across the supply chain. Blockchain can also improve the quality and safety of products by verifying their origin, authenticity, and condition. Blockchain can also enhance the collaboration and coordination among supply chain stakeholders by streamlining processes and reducing costs.
Some examples of blockchain applications in supply chain are:
• IBM Food Trust: IBM Food Trust is a blockchain-based platform that connects farmers, processors, distributors, retailers, and consumers in the food industry. IBM Food Trust allows participants to share data and information about food products on a secure and transparent ledger. IBM Food Trust aims to improve food safety, freshness, quality, sustainability, and traceability.
• Chronicled: Chronicled is a company that provides blockchain solutions for the pharmaceutical industry. Chronicled uses blockchain technology to track and verify the provenance and integrity of drugs throughout the supply chain. Chronicled helps prevent counterfeit drugs, diversion, theft, and fraud.
Blockchain in healthcare
Healthcare is another sector that can benefit from blockchain technology. Blockchain can enable better management and sharing of health data among patients, providers, payers, and researchers. Blockchain can also improve the security and privacy of health data by encrypting and anonymizing it. Besides, it can facilitate the development and distribution of drugs and vaccines by ensuring their quality and provenance.
Some examples of blockchain applications in healthcare are:
• Medicalchain: Medicalchain is a company that uses blockchain technology to create a decentralized platform for electronic health records (EHRs). Medicalchain allows patients to own and control their health data and share it with doctors, hospitals, pharmacies, and insurers. Medicalchain also enables patients to access telemedicine services and pay for them using cryptocurrencies.
• Guardtime: Guardtime is a company that provides blockchain solutions for various industries, including healthcare. Guardtime uses blockchain technology to secure and audit health data and systems. Guardtime has partnered with several organizations, such as the Estonian government, the UK National Health Service, and AstraZeneca, to implement blockchain solutions for health data exchange, cybersecurity, and drug development.
Blockchain in real estate
Real estate is another sector that can benefit from blockchain technology. Blockchain can enable faster, cheaper, and more transparent transactions in the real estate market. Blockchain can also facilitate the creation and exchange of digital tokens that represent fractional ownership of properties. Blockchain can also improve the verification and registration of property titles and deeds.
Some examples of blockchain applications in real estate are:
• Propy: Propy is a company that uses blockchain technology to create a global platform for buying and selling properties. Propy allows buyers, sellers, agents, and escrow agents to conduct transactions on a secure and transparent ledger. Propy also uses smart contracts to automate the legal and compliance processes involved in property transactions.
• RealT: RealT is a company that uses blockchain technology to enable fractional ownership of real estate properties. RealT allows investors to buy and sell tokens that represent shares of properties on its platform. RealT also uses smart contracts to distribute rental income and manage property maintenance.
How is blockchain used in business?
Blockchain is used in business by creating networks of participants who can share data and execute transactions on a distributed ledger. Blockchain networks can be public or private, depending on the level of access and permission granted to the participants. Blockchain networks can also be customized to suit the specific needs and requirements of different industries and use cases.
Blockchain networks typically consist of the following components:
• Nodes: Nodes are the computers or devices that run the blockchain software and store a copy of the ledger. Nodes can be validators or non-validators, depending on whether they participate in the consensus process or not.
• Ledger: Ledger is the database that records all the transactions and events that occur on the blockchain network. Ledger is composed of blocks of data that are linked together by hashes.
• Transactions: Transactions are the actions or events that are recorded on the ledger. Transactions can be transfers of value, execution of contracts, or updates of data.
• Smart contracts: Smart contracts are self-executing agreements that are encoded on the blockchain network. Smart contracts can define the rules and logic of transactions and automate their execution.
• Consensus: Consensus is the process by which nodes agree on the validity and order of transactions on the ledger. Consensus ensures that all nodes have the same version of the ledger and prevents double-spending or malicious attacks.
Blockchain for business: Real-world use cases from VNEXT Global
VNEXT Global is a leading blockchain development company that provides end-to-end solutions for various industries and sectors. VNEXT Global has successfully delivered several blockchain projects for clients across the world, leveraging its expertise in blockchain technology, smart contracts, decentralized applications (DApps), tokenomics, staking wallets, NFTs, gaming, DeFi, and more.
Here are some examples of blockchain projects from VNEXT Global:
VNEXT Global takes pride in developong one of the largest staking wallets in Southeast Asia, with over $350 million staked by May 2022. This decentralized wallet offers several main features:
- Stake on a Decentralized Wallet: Users can securely stake their cryptocurrencies, participating in network consensus and earning rewards.
- Buy, Exchange, and Receive Coins: The wallet supports easy cryptocurrency transactions, enabling users to buy, exchange, and receive various digital assets.
- Control Assets Securely: The decentralized nature of the wallet gives users full control over their assets, reducing the risk of centralized exchange breaches.
- Save Staking Validator Fees with Membership: VNEXT Global created a membership model offering cost-saving benefits for stakers, enhancing the overall value proposition.
Want to find more details about this project, refer to this:
VNEXT Global Staking wallet
Decentralized P2E Battle Game
VNEXT Global's innovative approach extends to the world of gaming. We have developed a fully decentralized play-to-earn (P2E) battle game, aimed at creating real-world blockchain gaming and supporting a universal basic income. The game features:
- Gameplay: An engaging gaming experience that allows players to earn rewards through skill and strategy.
- PvE (Player versus Environment) and PvP (Player versus Player): Diverse gaming modes cater to different player preferences, offering a comprehensive gaming ecosystem.
- Garage Features: Customization options for in-game assets, enhancing the gaming experience.
- Lending Mechanics: The game incorporates lending mechanics to facilitate the trading of in-game assets.
- Tokenomics: A well-defined token economy underpins the game, creating value for players and investors alike.
Want to find more details about this project, refer to this:
VNEXT Decentralized P2E battle game
Marketplace for Unique NFTs
VNEXT Global has also ventured into the world of non-fungible tokens (NFTs), creating the world's first NFT marketplace on the Fuse Network. This marketplace offers unique digital assets and boasts the following features:
- Rank NFTs Worldwide: A platform that ranks NFTs based on their rarity and desirability, creating opportunities for collectors and investors.
- Diverse Categories: VNEXT Global's NFT marketplace accommodates a wide range of categories, from art and music to sports memorabilia.
- Huge Communities: The platform fosters vibrant communities of NFT enthusiasts, collectors, and creators.
Want to find more details about this project, refer to this:
Blockchain technology is not just a buzzword; it's a transformative force in the world of business. It has found applications in finance, supply chain, healthcare, real estate, and beyond, promising efficiency, transparency, and security. As we move forward, it's clear that blockchain will continue to disrupt traditional business models and usher in a new era of trust and efficiency. Blockchain is just not a future - it’s the present of businesses.
If you are looking for a trusted IT partner, VNEXT Global is the ideal choice. With 14+ years of experience, we surely can help you to optimize your business digitalization within a small budget and short time. Currently, we have 400+ IT consultants and developers in Mobile App, Web App, System Development, Blockchain Development and Testing Services. We have provided solutions to 600+ projects in several industries for clients worldwide. We are willing to become a companion on your way to success. Please tell us when is convenient for you to have an online meeting to discuss this further. Have a nice day!